Insurance Due Diligence and Review Service

Protect Your Loan Exposure – Ensure Borrower Insurance Coverage is Sufficient

Lending institutions each day approve loans to businesses following exhaustive review of applicant credit-worthiness and ability to repay the loans yet continually make one fatal flaw.

They rely on a Certificate of Insurance to satisfy their requirements that borrowers secure and maintain sufficient insurance.

A Certificate of Insurance will never reveal all the exclusions, limitations and endorsements that might leave a borrower without coverage and the means to remain a going concern following an incident, accident or disaster…

…and which can leave a lender exposed.

Often Overlooked…

  • Does the policy cover changes in building code?
  • Are deductibles reasonable and leave a business enough to remain in operation following a claim?
  • Is coverage diminished following a claim?
  • Does the policy provide business interruption coverage that includes extra expenses and rental plus “Extended Period of Indemnity”?
  • Are litigation defense costs in addition to or included within, which reduces the coverage limits?
  • Is professional liability necessary and covered?
  • Is damage due to windstorm and hail not included even though these occurrences may shut down a business?
  • Is Flood coverage shown in one section of the policy only to be removed by endorsement later?
  • Is the lending institution properly listed and given proper notice of cancellation?


The Bon Jour Bakery, established in 1975, seeks a loan to expand to serve breakfast and lunch and to add state-of-the-art equipment. Finding an excellent credit history and Certificate of Insurance, First National extends the loan.

Six months later a fire severely damages the 60-year-old building housing the bakery. Updated town codes require demolition and new construction, costs excluded under the bakery’s property and casualty insurance policy – an exclusion not listed on the business’ Certificate of Insurance.

Bon Jour Bakery declares bankruptcy and defaults on its loan.

Rivers Insurance Group will provide lending institutions with the expertise to ensure they are not exposed to the unlisted exclusions, limitations and endorsements that are hiding in every insurance policy. We will review a borrower’s insurance contract, including the schedule of coverage (exclusions, limitations and endorsements) to minimize your exposure. We also will review and ensure that policy wording provides you with maximum protection.

Harvey Topitz, CPA

Harvey Topitz, CPA Founder and Principal

HARVEY TOPITZ, CPA, is founder and principal of Rivers Insurance Group, which he founded in 2005. With more than 30 years of experience placing property and casualty insurance for all industries, Topitz specializes in providing coverage for those businesses that are hardest to insure. He is on the board of directors of the New Jersey Turnaround Management Association (NJTMA). He now focuses on businesses in distress or bankruptcy and acts as consultant to lenders, turnaround professionals, trustees and receivers. He can be reached at (973) 588-4167 or

…the devil is in the details. This is a sobering message for turnaround professionals…

Harvey Topitz, CPA